Sugar makes up a large percentage, 20-30%, of raw material costs for two of the three main sugar containing product (SCP) sectors, chocolate confectionary and breakfast cereals, the third sector being non-chocolate confectionary. Also minding that the sugar price in the United States is 23.5 cents per pound while the world price is set at 10.9 cents; it is not uncommon for SCP manufacturers to be relocating abroad. The relocations of these manufacturers have been responsible for 6,400 job losses in the SCP industry of the total 10,000 losses since 2002. The high sugar prices in the United States are “maintained through support loans and tariff-rate quotas.” (pg. 3)
As reported by a large candy company labor only accounts for 3 to 6% for making the candy while in sugar labor is accounted for 30 – 70%. It is not uncommon for businesses like this to buy sugar in Mexico where sugar prices stand at two thirds of the US prices, or in Canada where prices are less than half the US......

Join Now to view the rest of this term paper!
Members: Login to view this research paper.

Title: Sugar Economics
Approximate Word Count: 654
Approximate Pages: 3 (250 words per double-spaced page)

With the Term Papers Lab Membership Pass, you get instant access to every essay on this site, including this essay on Sugar Economics, for as long as you remain a member.

Other essays sites charge almost $100 for a single term paper. At Term Papers Lab, you can get instant access to over 100,000 research papers for as little as $29.95!